Investing.com - The California New Car Dealers Association (CNCDA) released its California Auto Outlook Report on Thursday, summarizing new vehicle registrations and forecasting annual sales.
The report indicates a slight dip in California's new light vehicle registrations. Despite this, the state is projected to reach a forecasted 1.8 million new vehicle registrations by the year's end.
A key highlight from the report is Tesla Inc (NASDAQ:TSLA) declining market presence in California. The electric vehicle (EV) giant's registrations have dropped a significant 17% year-to-date (YTD), marking the third consecutive quarter of registration declines for the brand.
While Tesla's Model Y remains the top-selling car in the state, the data suggests that Tesla sales may have reached their peak in California.
On the other hand, traditional automakers like Toyota (NYSE:TM), Hyundai (OTC:HYMTF) (LON:HYUNDAIq), and Ford (NYSE:F) have seen a surge in popularity, particularly in their EV models. Toyota and Hyundai's battery electric vehicle (BEV) registrations rose by 108.1% and 65.7% respectively. Hyundai's Ioniq 5 notably took third place in the top-selling EVs in California YTD, surpassing Tesla's Model X.
David Simpson, CNCDA Chairman, expressed his excitement about the evolving auto market, stating, "With new competitive EV models and the latest ICE (NYSE:ICE) options, we're able to meet diverse customers’ needs and provide the support they want from their local dealership."
Toyota continues to dominate the Californian market with 150,964 registrations and a 16.9% market share. California also leads the nation in BEV registrations, with BEVs accounting for 21.4% of sales YTD.
In the first half of 2024, combined sales of BEVs, plug-in hybrid electric vehicles (PHEVs), hybrids, and fuel cell vehicles accounted for 38% of the market share in California, while internal combustion engine (ICE) vehicles made up the remaining 62%.
Despite Tesla's declining market presence, it remains the second-best selling brand in California with 102,106 registrations YTD. However, the brand's market share has dipped 2.3 points from last year, and Q2 2024 registrations have fallen 24.1% compared to Q2 2023.
The report also notes regional variations in BEV market share, with Northern California leading at 24.9%, followed by Southern California at 22.1%.